Federally backed mortgages get forbearance extension
As expected, the Federal Housing Finance Agency announced last week that it would extend forbearance programs for homeowners with federally-backed mortgages. Those with Fannie Mae and Freddie-Mac loans will be offered the option to extend deferment of their monthly mortgage payments for three months from their original expiration date if they are still struggling financially due to the pandemic.
Forbearance options were originally offered to borrowers for 12 months but as the COVID-19 pandemic continues to keep many businesses shuttered, homeowners may now have up to 15 months of being mortgage free.
Banks encourage those who are able to make their monthly payments to do so. Forbearance does not forgive the missed payments but rather offers borrowers the option to modify their loans to make up for the outstanding balance later on.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media
Forbearance options were originally offered to borrowers for 12 months but as the COVID-19 pandemic continues to keep many businesses shuttered, homeowners may now have up to 15 months of being mortgage free.
Banks encourage those who are able to make their monthly payments to do so. Forbearance does not forgive the missed payments but rather offers borrowers the option to modify their loans to make up for the outstanding balance later on.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media